Written by Christina Triantafyllou, AKMI and Evangelia Karathanasi, iED
Apparently, circular economy and business is a financial term that we come across quite often nowadays. Or probably should we say, the examples of circular businesses have become more visible to the economic landscape. There will be an attempt to explain this type of system as simply as possible, for people who want to get familiar with this financial term.
Defining Circular Economy and Business
A crude definition of the term above, would be a system, where the products in use are maxed out their potentiality. Hence, the known linear design, that ends up into waste, is now redefined and consequently, renewed. A design of this kind is not only beneficial for the business sector; but it certainly proves to be advantageous for society and the environment.
The Benefits of this System; or a Supplement to the Definition
Judging by the short definition above, this pattern, clearly, aims at economic growth, in a different manner. Specifically, this type of economy gradually refrains from the use of limited resources. This fact is interpreted in less consumption of environmental materials; hence, there is a decrease in raw material supply. As a result, competitiveness and innovation rises; and, it all boils down to the requisite, which is economic growth.
The Milestones of this System
As mentioned above, in this particular economic system, “waste” can be potential resources. Hence, preservation of the existing resources is a key element. This extends to the fact that regenerative resources become another element to consider. All the above, leads to the fact that there should be a reconsideration of the current business plan; hence, a long-term plan of the future, is an imperative.
It is an economic pattern that should be given attention. Institute of Entrepreneurship Development (iED) as an active “instrument” in the coordination of European projects, strongly believes in the beneficial potentials of this system; and, is actively involved in many EU projects. Finally, do not hesitate to drop us a line, if you are interested in collaborating, regarding this subject.